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Yes, what you say is technically correct. We feel trapped because we would have to massively downgrade to move. Obviously, we COULD do that, but we don't want to. You are right, we also couldn't afford to buy our current house if we currently didn't own a home, either. I am arguing that the fixed thirty year mortgages artificially drives up prices, which means that you are stuck and can't move whenever interest rates…
Fixed-rate 30-year mortgages have been around for generations now. They're long since priced into the market. Whether any specific person actually thinks through whether spending as much money as the bank will lend is prudent, instead of buying a house they can actually afford, saving the money, and upgrading later, is a different question. But it's not fair to blame the mortgage itself.
Re: Show HN: I built a dashboard to compare mortgage rates across 120 credit unions
#131it's too expensive to move with closing costs and realtor fees :( It's almost always better to buy the most expensive house you can if you you still have a way to increase your earning potential in your career. if you could move without a 6% fee and $xx,xxx financial fees it would definitely be better for everyone overall except the industries who have inserted themselves into these transactions